The video below shows a Raspberry Pi powered universal translator. The setup includes two RPi units along with one user wearing a Vuzix headset so that words are put in the users vision. Bluetooth mics are used to send the voice to a Microsoft translation service which replies and then puts the response in your language on the screen.
The concept idea is amazing and one that will likely speed up over time as the services are optimised a little more. There is a small lag on conversation but you see in the video above that it actually works extremely well.
The software was created by Will Powell who is based in the UK and makes use of the following equipment:
2x Raspberry Pi running debian squeeze
Vuzix 1200 Star